| Tacticaltrading |
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Gold User, Member, TeleChart
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| Thursday, October 7, 2004 |
| Monday, November 14, 2016 9:54:30 AM |
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Sunbird,
Here is the way I see it. Big money (Mutual Funds and such) is what really pushes stocks around. They pay less attention to technicals and more to fundamentals. But, when they make a commitment to a stock, it shows up in the technicals. So, for there to be good technicals, there should be some good fundamental some where. Of course time scale is important on this. Short-term trading, meaning anything under a couple of weeks, this does not relate. But once you start looking at weekly charts, this sort of approach starts to make sense for better and worse performing stocks.
One response mentions CANSLIM, and I guess you could say I am saying the same thing, only using a lot more words.
Sometimes it is a chicken and the egg question. What came first? The mutation that resulted in a chicken embryo that developed inside the pre-mutation's egg. Technical strength can surface before the fundamentals improve, like in a turnaround situation. Other times, like right now in the chip stocks. The fundamentals are looking great, but the technical strength is not really there as one would expect.
If you do a lot of research on this you will find it works both ways.
Tacticaltrading
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